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Case Study for Kingdee

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Kingdee

Q.1 What are the distinctive management competence and business practices that enabled Kingdee to be successful in the past and how will these need to be changed or further developed in the future? (You need to have a view on what are Kingdee’s future business challenges.) Stages | Business Model | Management Competence | Business Practices | Startup | A/C | ●Attractive compensation for "Hukou" to hold talents
●Green Light" to satisfy employees
●“Five winner sons” method to motivate staff | ●Financial application based on Windows 95
●Success in securing venture capital | Rapid Growth | ERP | New core value "care, integrity and innovation" to keep innovation | ●Changes in ERP products
●IPO and acquisition | Strategic Turnaround | Saas | “People Culture” to strength team-work under corporate policies | ●Strategic cooperation with IBM
● Evolving into B2B e-commerce platform |

Management competence: * Entrepreneurial Period: 1992-1998
1. Attractive compensation for “Hukou” to hold talents
Kingdee, like its competitors, is extremely knowledge intensive. This characteristic is determined by the nature of software industry. Actually, before Kingdee was formally founded, since the “Aipu” stage, Robert Xu, Kingdee’s chairman, has realized the importance of his employees.
When Kingdee was still called “Aipu” in 1992, the company was not qualified to grant “Hukou” to its engineers. This disabled Aipu to retain qualified employees for long service terms. In consideration that engineers are the most important assets for the company and CEO’s high attention on technical innovations, Kingdee attracted and held talented people basically by attractive compensation. This decision helps the company rapidly dominate the emerging low-concentration market.
2. “Green Light” to satisfy employees After Kingdee was formally founded, on August 8th, 1993,

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